[edit] per the weekly report’s NFTRH+ Notes segment, we have introduced an initial target of 75 and extended the best target to a less conservative 88 from 84. Here is the weekly chart as tracked in NFTRH reports…
The title of the post is a cute way of comparing what we saw in prime Semiconductor Equipment company Lam Research (LRCX) last June to the chart of Biotech company AbbVie (ABBV) today.
Here is the weekly chart of LRCX from that update. All we can do is chart and measure, and at that time LRCX measured to 106. It happens to reside at 145 currently! Oh that I could be more comfortable with unbridled momentum. But I am not, so a more modest profit was taken long ago.
Here is the current ABBV weekly chart. The projected target – if ABBV breaks through resistance – would be 84. The pattern is an Ascending Triangle, as was the one on LRCX. But more than that is the shape of the thing. This looks like gold’s pattern from 2007 to 2009, which resolved bullish. Some people call it an Inverted H&S, but it is not because it is a continuation, not reversal pattern. Whatever it is, it tends to be bullish.
Consider this a look-ahead on ABBV, pending the resistance level. Note that until something is through resistance it is not through resistance. We could be early and there could well be another touch of the lower line before any would-be breakout. Also note that after the first breakout in LRCX, the stock immediately dropped to shake out the breakout players. I held it through those shenanigans, but that would be another consideration.
This is a prime Biotech company that pays a good dividend. If you are constructive on the Biotech sector it may be worth checking out, and it may be worth following its progress at the noted resistance. We caught LRCX just as it was first breaking resistance. Here we are looking forward a bit and illustrating a ‘what if?’ on a potential resistance break.
A reminder that chart based NFTRH+ updates are technical trade setup ideas, which may not be revisited as the buy, sell, stop parameters are already noted. They are meant as a starting point for further research if interested. I will not personally buy every item highlighted and will sometimes sell – without prior notice (because this takes time and resource away from NFTRH’s main functions) – any item that I do buy, below target, which is something I often do as a trader. Also please be aware that I am not a fundamental stock analyst. Due diligence is your responsibility.
